The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-04-19

in recent circular, that the present ia
vorable statistical position is injured by the
large but unknown quantities of refined
sugar in the United Kingdom, by the un-
known not charged quantities OF sugar iii
the French factories, which may be esti-
mated at about 10000 to 10000 tons, and
by the ready supplies in Russia, which
amount to about 15O, 600 tons Further
more it appears that there is very good
prospect of the British market being again
flooded with cheap Russian sugar. The
Russian Government it seems has con-
scented to receive payment for the arrears
due for taxes, etc, from lubricants, in
sugar, which it takes over at a stipulated
price and promises to hold with the hope
that prices will advance, but if this adj
vance is not realized by the first Of next
October the Government is to be at liberty
to export its holdings. The quantity of
sugar that will thus come into the posses
sion of the Russian Government will be
very large, and no great foresight is nee
essary to recognize the possibility that by
next October these Government stocks
may be subjected to forced realization,
especially as the loss which may may be
involved will at least, nominally, be
shifted from the Treasury to the fabri-
cants."
FURTHER REDUCTION IN PRICES.
The Importance of this large invisible
supply cannot be overlooked, and taken
| in conjunction with the future flooding of
the market that may be expected from Rus
STA, it has naturally caused considerable
comment. 1t has already had an effect
upon the New York market, where trans
actions are very limited in extent, and the
market is devoid of any present or posi-
BILE future enlivening One result of the
gloomy outlook was the reduction by the
California Refinery in San Francisco, on
the 8th instant, of it's prices on all refined
sugars, except yellow grades, by e cent.
The reduction was somewhat of surprise
there. It's effect upon the American Re-
finery can be best indicated by the follow
ing explanation. The Interstate Commerce
law entirely precludes the shipment of
raw sugars to New Orleans or
New York on account of the high rates
now ruling for overland freights on long
distances. The California Refinery con-
trolls four-fifths of the Pacific Coast trade,
consequently the American has no outlet
for its large supplies but by underselling
the California This it tries to do by offer
ing a rebate of q cent under the CALIFORNIA;
price list This is absolutely necessary for
two reasons. First, the American Rein
cry sugar is inferior in quality to that of
the California, and therefore an induce
ment must be offered to buyers. Second,
an inducement must be offered to the regu-
lar customers of the California, who have
stood by it four years, so as to tempt them
to transfer their patronage to the opposi-
ton refinery. To show the profits of sugar
refining in the American the following
figures, which are correct, serve the pur-
pose:
PROFITABLE BUSINESS.
Dry granulated is quoted at go cents
less "A cent, the bait or rather the rebate,
offered by the American. That leaves its
price at 81 cents. The cost for raws on
the Cuban basis is 3-16 cents, less % cent
per pound, or 11-16 cents for 96 polariza-
ton. To obtain the other four degrees
and bring it up to 100 degrees polarization
for granulated refined, must be added an
other q cent, making the cost at 3-1S
cents. With sales at 81 cents it will very
easily be seen that there is a balance of 1-16
cent per pound in favor of the American
Refinery, to pay all the expenses of haul
ing from the wharf, refining, cooperage
and delivery. Taking the quantity han
died by the American Refinery at $4,000
tons annually, this gives 100 600, 900 pounds
of sugar, and putting the loss on its bust
ness at the small sum of p cent per pound,
this makes an annual loss of 5000, 900,
which is low figure as the basis of loss at
= cent per pound is probably below the
mark. These facts are given for the in
formation of Hawaiian planters generally.
1t is improbable that body of stockholders
will care to continue losing money to the
extent of $4,000 a month. They should
be able to find better investments for their
surplus cash. The ADVERTISER considers
it due to those connected with the sugar
interests of these Islands to make these
facts known, as they might not learn them
from any other source. It is also advis-
able to point out that while Hawaiian
planters have to wait sixty days after de-
livery before obtaining payment for their
raws, the American Refinery, having the
collateral, can obtain advances, and thus
has the use of the planters money for
sixty days, while those here, who need it,
have to wait sixty days for what has been
earned by their hard and honest toll or
else pay considerable portion of it in dis
counting paper. There is considerable
food for thought in the foregoing which is
left for the mental digestion of the ADvER-
Users readers.